Bountiful firm acquired to create games for Wii

Electronic Arts Inc., the world's largest maker of video games, acquired Bountiful-based Headgate Studios Inc.'s development team to create games for Nintendo Co.'s new Wii console.

Headgate previously developed titles including "Madden NFL" for play on personal computers. The developers will focus on games for Wii, introduced in the United States on Nov. 19, Electronic Arts of Redwood City, Calif., said in a statement.

Terms of the agreement weren't disclosed.

Electronic Arts is developing games to capitalize on Wii sales, which surpassed 600,000 units in its first eight days on retail shelves. Former Headgate designers will remain in Utah and work with Electronic Arts teams in California to create games for the console, which features a wireless controller that can be swung like a bat, racquet or sword.

"Electronic Arts is probably a little behind schedule, behind from where they hoped to be on Wii development," said Evan Wilson, an analyst with Pacific Crest Securities in Portland, Ore. "Now that it's apparent Wii is going to be a success, they need to expand their ability there."

Electronic Arts has released two titles for the console. That compares with seven from Ubisoft Entertainment SA and three from Activision Inc.

Vance Cook, Headgate's founder and chief executive officer, will become executive producer of the Utah studio, reporting to Electronic Arts general manager Nick Earl, the statement said.

Headgate will be discontinued as a corporate entity, Electronic Arts spokeswoman Tammy Schachter said in an interview.

Wilson said the structure of the deal suggests that Headgate didn't have any games in the pipeline. There probably was no intellectual property to acquire, so they simply hired the staff and let the company disappear.

Shares of Electronic Arts fell 88 cents to close at $55.89 before the acquisition was announced in Nasdaq Stock Market composite trading. They've risen 6.8 percent this year.